1. The valuation or allocation assertion relevant to accounts payable ensures that recorded balances reflect the true underlying economic value of the assets.

   True

   False

4 points

QUESTION 15

1. The auditor is responsible for designing and maintaining policies and procedures to identify, evaluate and account for loss contingencies.

   True

   False

4 points

QUESTION 16

1. Presentation and disclosure are not considered as management assertions relevant to cash.

   True

   False

4 points

QUESTION 17

1. The board of directors of an organization approving all new debt will be the expectation of the auditor when it comes to internal controls over equity.

   True

   False

4 points

QUESTION 18

1. Bank reconciliations are key control procedures relating to cash.

   True

   False

4 points

QUESTION 19

1. Reviewing monthly bank reconciliations completed by employees ensures that cash access is limited to appropriate individuals.

   True

   False

4 points

QUESTION 20

1. The client is required to adhere to the recommendations made by the auditor or else the client stands the risk of receiving a qualified audit report.

   True

   False

4 points

QUESTION 21

1. The auditor does not necessarily have to take into consideration misstatements from prior periods.

   True

   False

4 points

QUESTION 22

1. Increase in inventory is one of the fraud risk considerations of the auditor.

   True

   False

4 points

QUESTION 23

1. The dual approach to uncorrected misstatements is mandated by the Securities & Exchange Commission.

   True

   False

4 points

QUESTION 24

1. In the event there are no material violation of generally accepted auditing principles, the audit will issue an unqualified report.

   True

   False

4 points

QUESTION 25

1. The auditor is required to date the audit report using the last date of fieldwork.

   True

   False